New Zealand’s Problems

Manawatu Times, Volume 59, Issue 268, 15 November 1934, Page 7

New Zealand’s Problems

What the Government Has Done COMMENT BY MR COATES Per Press Association. WELLINGTON, Nov. 14. Hon. J. G. Ooatos, iti an address to the conference of the New Zealand Manufacturers’ Federation this morning, referred to criticism levelled against the Government as a result of tho Ottawa Agreement. He said he thought the criticism from both sides cancelled each other out. He quoted the railway and Post Office Savings Bank figures to show that conditions in New Zealand were improving. Tho recent increase in spending power had shown itself in the almost phenomenal figures for the registration of now motor vehicles. The unemployment figures also showed a substantial improvement in tho September quarter, giving a drop of nearly 14,0C0 as compared with 193<*. Both exports and imports had shown an increase. Imports had exceeded exports for July, August and September of tho present year, which was significant of the return to normal. The banking turnover in the first ten months of 1934 was £5(13,000,000 as compared with £4(56,000,000 in 1933. That indicated greater business activity. Bank advances since August had also increased.

In spite of the improvement in the unemployment position, continued Mr. Coates, there was still every reason for concern that affected tho manufacturers very directly. Already ho had suggested in a tentative way that manufacturers should examine the bearing of the length of working time on the problem. He realised that many difficulties rvere involved, but it deserved patient examination to see whether and how far they could be overcome. New Zealand had no reason to be ashamed of the steps which had been taken towards economic adjustment.

State In Business. Nowadays, from all sides they heard the complaint of too much Government participation in business, as though the Government desired to extend its activities. He, therefore, wished to emphasise that the Government did not desire to extend its activities, but that any Government intervention in business life was brought about by pressure of circumstances.

Referring to the statement that New Zealand should insist on a higher standard of general education for children, Mr. Coates said that if a higher age for entry into industrial employment would help to cure unemployment, or ii? the manufacturers could agree among themselves ns to the necessity for this step, they could rest assured that every consideration would be given to cases where assistance was necessary against the competition of goods produced under less favourable conditions.

Cost of Production. In New Zealand there were many manufacturing lines which we should be able to produce as cheaply and efficiently as other manufacturing countries. The New Zealand manufacturer had at hand a market of at least one and a-half million people, all consumers, but had to guard against overdevelopment of productive capacity. The moral for New Zealand was that over-capitalisation must be avoided. New Zealand had over-capitalised by multiplying the number of small factories so that many were not running to full capacity. The Government should not be asked to protect those; it was the duty of the industry itself to eliminate high costs for producers and give the consumers the benefit of the lowered overhead costs in lower prices. There were many concerns in New Zealand which were individually efficient, yet the industry as a whole could be regarded as an uneconimic one because larger units were possible and necessary.

The Government was willing to meet the manufacturers ivhen it could be shown that their proposals would not only assist themselves but conduce to the material welfare of New Zealand, Mr. Coates added.